Nutriband Inc. Prices $6.6 million Public Offering and Announces Uplisting to the NASDAQ Capital Market

Rhea-AI Summary

Nutriband Inc. (NASDAQ:NTRB, NTRBW) has announced the pricing of an underwritten public offering of 1,056,000 units at $6.25 per unit, totaling gross proceeds of $6.6 million. This offering will fund the development of its abuse deterrent fentanyl patch incorporating AVERSA technology. Additionally, Nutriband's securities will commence trading on the Nasdaq Capital Market as of October 1, 2021. The company has granted underwriters a 45-day option to purchase additional shares and warrants to cover over-allotments. CEO Gareth Sheridan emphasized the uplisting's potential to enhance corporate visibility.

Positive

• Pricing of public offering at $6.25 per unit generates $6.6 million in gross proceeds.
• Uplisting to Nasdaq is expected to increase corporate visibility and shareholder value.
• Each warrant allows for purchase of common stock at $7.50, expiring in five years.

Negative

• Potential dilution of shares due to the public offering and additional warrants.
• Market risks associated with being an undercapitalized developing company.

ORLANDO, FL / ACCESSWIRE / October 1, 2021 / Nutriband Inc. (NASDAQ:NTRB) (NASDAQ:NTRBW), a company engaged in the development of pharmaceutical products focused on preventing opioid abuse, contract research and development services and the contract manufacturing of topical and transdermal products, today announced that its common stock and warrants will begin trading on the Nasdaq Capital Market effective October 1, 2021.

Nutriband also announced the pricing of an underwritten public offering of 1,056,000 units of securities at a public offering price of $6.25 per unit for total gross proceeds of $6.6 million, before deducting underwriting discounts and commissions and other estimated offering expenses. Each unit consists of one share of common stock and one warrant. Each warrant is immediately exercisable, will entitle the holder to purchase one share of common stock at an exercise price of $7.50 and will expire five years from the date of issuance. The shares of common stock and Warrants may be transferred separately immediately upon issuance. In addition, Nutriband Inc. has granted the underwriters a 45-day option to purchase up to 158,400 additional shares of common stock and 158,400 additional warrants to cover over-allotments in this offering.

"Uplisting onto the Nasdaq Capital Market is a significant milestone in our evolution, and we believe will exponentially increase our corporate visibility and broaden the awareness of Nutriband amongst active market participants," said Gareth Sheridan, CEO. "This achievement reflects the hard work of our outstanding team, and we look forward to continuing to execute on our strategic plan and growth initiatives as we build long term shareholder value."

The shares and warrants will begin trading on The Nasdaq Capital Market effective Friday, October 1, 2021, under the symbols "NTRB" and "NTRBW", respectively.

WallachBeth Capital, LLC and WestPark Capital, Inc acted as the joint book-running managers for the offering.

About Nutriband Inc.

We are primarily engaged in the development of a portfolio of transdermal pharmaceutical products. Our lead product under development is an abuse deterrent fentanyl patch incorporating our AVERSA ® technology. Aversa is an abuse deterrent transdermal technology that incorporates aversive agents to prevent the abuse, diversion, misuse and accidental exposure of drugs with abuse potential, specifically opioids.

The Company's website is www.nutriband.com. Any material contained in or derived from the Company's websites or any other website is not part of this press release.

About Our Forward-Looking Statements

Certain statements contained in this press release, including, without limitation, statements containing the words ‘'believes,'' "anticipates," "expects" and words of similar import, constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve both known and unknown risks and uncertainties. The Company's actual results may differ materially from those anticipated in its forward-looking statements as a result of a number of factors, including those including the Company's ability to develop its proposed abuse deterrent fentanyl transdermal system and other proposed products, its ability to obtain patent protection for its abuse technology, its ability to obtain the necessary financing to develop products and conduct the necessary clinical testing, its ability to obtain Federal Food and Drug Administration approval to market any product it may develop in the United States and to obtain any other regulatory approval necessary to market any product in other countries, including countries in Europe, its ability to market any product it may develop, its ability to create, sustain, manage or forecast its growth; its ability to attract and retain key personnel; changes in the Company's business strategy or development plans; competition; business disruptions; adverse publicity and international, national and local general economic and market conditions and risks generally associated with an undercapitalized developing company, as well as the risks contained under "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the Company's Form S-1, Form 10-K for the year ended January 31, 2020 and Forms 10-Q, and the Company's other filings with the Securities and Exchange Commission. Except as required by applicable law, we undertake no obligation to revise or update any forward-looking statements to reflect any event or circumstance that may arise after the date hereof.

For more information, contact:
Gerald Weigel
Public Relations Principal
Nutriband Inc.
Nutriband Office: 407-377-6695
Direct: 419-304-6300

SOURCE: Nutriband Inc.

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FAQ

What is the purpose of Nutriband's public offering?

Nutriband's public offering aims to raise $6.6 million to support the development of its abuse deterrent fentanyl patch.

When did Nutriband's securities start trading on Nasdaq?

Nutriband's common stock and warrants began trading on the Nasdaq Capital Market on October 1, 2021.

What are the details of the public offering by Nutriband?

The offering consists of 1,056,000 units at $6.25 per unit, with each unit comprising one share of common stock and one warrant.

What is the exercise price of the warrants associated with Nutriband's offering?

The warrants entitle holders to purchase one share of common stock at an exercise price of $7.50.

Is there a risk of shareholder dilution from Nutriband's public offering?

Yes, the public offering and additional warrants could result in shareholder dilution.